US, Feb 21 : The White House has announced a 10% US import tariff on goods entering the country for a period of 150 days, invoking Section 122 of the Trade Act of 1974. The decision comes after the US Supreme Court struck down earlier reciprocal tariffs introduced by President Donald Trump.
The temporary duty will take effect on February 24 at 12:01 am Eastern Standard Time and will be calculated on an ad valorem basis, meaning it will be charged as a percentage of the value of imported goods.
Why the tariff has been introduced
According to the administration, the measure is aimed at addressing what it describes as a “large and serious balance-of-payments deficit.” Officials argue that heavy reliance on imports has led to an outflow of US dollars and weakened domestic production capacity.
Section 122 allows the President to impose temporary import restrictions without a lengthy investigation if there is a fundamental international payments problem. The White House maintains that current trade imbalances justify immediate action.
Exemptions and covered goods
The 10% US import tariff will not apply to all products. Exemptions include certain critical minerals, pharmaceuticals and related ingredients, fertilisers, natural resources, energy products, metals used in currency and bullion, selected agricultural commodities, some electronic goods and passenger vehicles.
Officials said these exclusions are intended to protect key sectors of the US economy while still addressing payment imbalances.
Duration and possible extension
Tariffs imposed under Section 122 automatically expire after 150 days unless Congress votes to extend them. Trade analysts note that a similar measure could be reintroduced if the administration declares a new balance of payments emergency.
Further trade action
Separately, the President has directed the US Trade Representative to initiate a Section 301 investigation into trade practices considered unfair to American businesses. While the Supreme Court ruling blocked one legal pathway for tariffs, officials argue it does not restrict broader executive authority under other trade statutes.